BorgWarner looks to $10bn from e-mobility by 2027
Automotive supplier BorgWarner is aiming to generate $10bn, half its revenue, from e-mobility products by 2027.
The “Charging Forward: 2027” strategy aims to grow eProducts for both BEVs and Hybrid vehicles to over $10bn by 2027, making up nearly 50% of BorgWarner’s total sales. This includes a new logo.
The company says it is on track to have at least 25% of its revenues from battery electric vehicles (EV) by 2025, with organic EV bookings of $3 billion for 2025 exceeding its $2.5 billion target. This makes the $10bn target challenging but highlights the booming EV and hybrid market. The company has made five EV-focused acquisitions in the battery pack, e-motor, power electronics, and direct current fast charging spaces, including Tier One supplier Delphi.
It aims for approximately 7% margins and positive free cash flow in its eProduct portfolio by 2027, driven by economies of scale as eProducts revenue growth is expected to outpace eProduct R&D.
“Over the past two years, the BorgWarner team has worked diligently to execute on our ‘Charging Forward’ strategy, and we believe we are well on track to meet or exceed our 2025 goals for EV organic growth, M&A and asset dispositions. This next phase of growth is a natural extension of our efforts to enhance our entire eProduct portfolio. Building on our success to date, we expect our eProducts to deliver over $10 billion in revenue by 2027,” said Frédéric Lissalde, President and CEO of BorgWarner.
“We believe BorgWarner is uniquely positioned to capture this growth opportunity given our leading market positions, deep customer relationships, strong Foundational assets and proven track record of innovation. As we work to drive sustainable, long-term value for our shareholders and other stakeholders, we will continue to be guided by our vision for a clean, energy-efficient world.”
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